Integrated Potato Chips paid a $2.80 per share dividend yesterday. You expected the dividend to grow steadily at a rate of 4% per year.

a. What is the expected dividend in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

year 1 expected dividend is ____ year 2 expected dividend is_____ year 3 expected dividend is_____

b. if the discount rate for the stock is 12%, at what price will the stock sell today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

current price______

c. what is the expected stock price 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

future price____________

d. if you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? (Leave no cells blank-be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

d. if you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? (Leave no cells blank-be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

dividend year 1_______ year 2_______ year 3____________

sale of stock year 1_______ year 2 ______ year 3____________

total cash flow year 1_______ year 2 _______ year 3___________

PV of cash flow year 1_______year 2 ________ year 3__________